Eni, BP To Invest $5 Billion in Angola as Output Drops Below 1M BPD

Eni-BP joint venture Azule Energy will invest $5 billion in Angola over the next five years and drill 18 wells, with two-thirds operated by the company, according to a Reuters report on Wednesday. The spending is comparable to Azule’s outlays since the JV launched in 2022 and centers on sustaining output from core offshore assets.

“Since its inception, Azule Energy has invested more than $5 billion in Angola, and during the next few years, we plan to invest an additional $5 billion,” Eni CEO Claudio Descalzi told reporters. 

The commitment was set out alongside other pledges at AOG 2025, where international operators detailed near-term work scopes. TotalEnergies confirmed a $3 billion program for a Dalia life-extension, signaling continued investment in mature deepwater infrastructure that still has incremental recovery potential.

The new capital arrives as Angola’s crude production has fallen below 1 million bpd for the first time since its OPEC exit in 2024. Years of natural decline across legacy deepwater hubs and uneven upstream spending have pressured volumes even as Luanda accelerates licensing rounds and redevelopment campaigns designed to slow field depletion.

Gas has now moved to front and center, with government officials and company statements describing gas monetization as a priority for power generation, industry, and prospective LNG feedstock. 

Azule’s 18-well program is expected to include development and infill locations where subsea capacity and processing headroom are available, alongside appraisal work that can be tied into existing systems. Execution will hinge on rig scheduling, subsea equipment lead times, and marine services availability, which are all factors challenging West Africa’s supply chain.

For cargo buyers, additional Angolan liftings would add medium-sweet barrels into Atlantic Basin and Asian spot markets that have cycled through periods of tight prompt availability during maintenance seasons. 

By Charles Kennedy for Oilprice.com

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